JPMorgan warns of a recession in the US and the world in six or nine months

The CEO of JPMorgan Chase & CoJamie Dimon said the United States and the world economy could enter a recession in the middle of next year, CNBC reported on Monday.

The inflation runaway, large interest rate hikes, the Russian invasion of Ukraine and the unknown effects of Federal Reserve policies are some of the indicators of a possible recession, he said in an interview with the business news channel.

“These are very, very serious things that I think are likely to push the United States and the world – I mean, Europe is already in a recession – and are likely to put the United States in some kind of recession six or nine months from now.” Dimond said.

His comments come at a time when the big US banks are preparing to present their results for the third quarter of 2022 starting Friday.

So far this year, Wall Street’s benchmark S&P 500 index has lost nearly 24%, with all three major US indices trading in bear market territory.

Dimon said the S&P 500 could drop “another easy 20%” from current levels, and that the next 20% drop will likely “be a lot more painful than the first,” according to CNBC reporting.

Earlier this year, Dimon called on investors to prepare for an economic “hurricane” after JPMorgan, the largest US investment bank, suspended share buybacks in July after failing to meet Wall Street’s quarterly expectations. Street.

In June, Goldman Sachs had forecast a 30% chance that the US economy would enter a recession over the next year, while economists at Morgan Stanley they placed the probabilities of recession for the next 12 months at around 35 percent.

The President of the World Bank, David Malpassand the managing director of the International Monetary Fund, Kristalina GeorgievaThey also warned on Monday of the growing risk of a global recession and said inflation remained a problem following the Russian invasion of Ukraine.